Menu
AGL Energy has no plans to break up Vocus

AGL Energy has no plans to break up Vocus

Plans to grow the combined business

Credit: REUTERS | David Gray

AGL Energy has no plans to break up its takeover target, Vocus Group, but instead will aim to grow the combined businesses, AGL CEO Brett Redman said.

AGL announced a $3.02 billion tilt for Vocus on Tuesday, sparking a sharp fall in AGL's shares as investors questioned why Australia's top power producer needed to buy a struggling company with a fibre optic network. 

Redman said on Wednesday AGL saw Vocus giving it a leg up in being able to offer new energy and data-blended products, although in the long run there may be parts of the Vocus business that were "not mission critical" to that objective.

"At this point we haven't said that there's anything that we would expect to exit," Redman told reporters on the sidelines of an energy conference in Melbourne.

"We're not going into this with a mindset of break-up. We're going into this with a mindset of growing and combining the businesses."

AGL unveiled an offer to pay customers in South Australia, Victoria, New South Wales and Queensland states to team up their rooftop solar panels and batteries into a "virtual power plant" that AGL would coordinate to boost power supply into Australia's strained grid at peak times.

Redman cited that product as an example of how AGL could put Vocus's network and data centres to use.

"All these new products and services that are emerging can be done without owning a fibre optic network. But our ability to do them will be enhanced if we do," he said.

AGL's shares recouped some losses on Wednesday, climbing 1.8 per cent and outperforming the broader market.

(Reporting by Sonali Paul; Editing by Stephen Coates)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags VocusAGL

Featured

Slideshows

Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments